Which of the following is not an example of a mitigating factor that reduces the risk that the going concern assumption may be in doubt?
A)Significant rapid increase in competition
B)The ability to raise additional funds via borrowings
C)The ability to sell an unprofitable segment of the business
D)A letter of guarantee from a parent company

Question

Quizplus · Accepted Answer

Significant rapid increase in competition is a factor that may increase the risk that the going concern assumption may be in doubt, rather than reduce it. The other options - B, C, and D - are all examples of mitigating factors that could reduce the risk.

Which of the Following Is Not an Example of a Mitigating